Each year many retailers cannot wait until the back-to-school retailing boom. Parents take their kids shopping for shoes, clothes and school supplies. It is nearly a $50 billion spending spree in the United States.

Unfortunately the back-to-school retailers Bonanza of the past few years has been less than expected and yet this year is about on track from the revised estimates. Many corporations that sell retail are pleased with the results of the back-to-school sales, but others are somewhat worried as they were not quite what they expected. Why is this you ask?

Well, much of the problem with the consumer spending during the retail back-to-school periods has to do with consumer debt and the cost of gasoline. Many families routinely report that they are paying $200 per week on fuel from their cars. This is money that they would’ve spent on other things for the family and also for back-to-school supplies, BONANZAJP close and shoes.

Luckily for the time being the unemployment rate is significantly low and 4.7% nationwide and that means that there is money of money flow in the retail space of the economy, but much of that is handed over for fuel cost to drive the family cars to and from work and to take the kids to soccer practice or school. As the average American pays more for gasoline they have less money to spend on other items and this is one of the problems that the American consumer is currently facing. Consider all this in 2006.



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